ReportWire

Tag: Tom Lee

  • Tom Lee Shrugs Off ETH Sell-Off, Says Fundamentals Don’t Match Falling Prices

    [ad_1]

    BitMine added 41,788 ETH last week as Tom Lee called the pullback attractive amid growing on-chain activity.

    Ethereum’s (ETH) price plunged over the weekend, sliding from around $2,900 to near $2,100 as selling pressure intensified. It has since stabilized slightly as of Tuesday, but remains down more than 26% over the past month.

    Despite weakening investor confidence, Fundstrat head of research Tom Lee attributed the crypto asset’s weakness to the absence of leverage and gold’s rally rather than deteriorating Ethereum fundamentals.

    Aggressive Buying Spree

    Leading Ethereum treasury firm BitMine has continued to accumulate ETH during the recent price pullback. Lee, who is also its Chairman, described current levels as “attractive” amidst what he considers as strengthening network fundamentals.

    Lee said,

    “BitMine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals. In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance.”

    The sharp decline in the crypto asset’s price over the past month comes even as Ethereum daily transactions reached an all-time high of 2.5 million and active addresses climbed to a record 1 million per day in 2026. Lee compared this to earlier crypto downturns, when on-chain activity declined, and said recent price weakness appears driven by non-fundamental factors, including subdued leverage and a surge in precious metals prices.

    His comments followed reports estimating that the company was sitting on over $6.9 billion in unrealized losses on its Ethereum holdings.

    No Pressure To Sell ETH

    As of February 2, the company reported total crypto and investment assets of $10.7 billion, including 4,285,125 ETH, 193 Bitcoin, a $200 million stake in Beast Industries associated with MrBeast, a $19 million stake in Eightco Holdings, and $586 million in cash.

    You may also like:

    According to the company, its balance sheet comprises approximately $10.1 billion in crypto and investments, with its Ethereum holdings generating staking rewards at a Composite Ethereum Staking Rate of 2.81%, while cash earns money market yields of roughly 3.5% to 3.9%.

    BitMine reported no outstanding debt. Lee said this structure allows the firm to withstand crypto market volatility while generating recurring income. He also added that there is no pressure to sell ETH given the absence of debt covenants or related restrictions. As of February 1st, BitMine had staked 2,897,459 ETH, which is worth around $6.7 billion. This is an increase of 888,192 ETH over the past week and represents a portion of its total Ethereum holdings.

    Staked ETH has risen steadily from 408,627 ETH at the end of December 2024. BitMine said that it is currently working with three staking providers as it prepares to launch its commercial MAVAN validator network in 2026. As per Lee’s update, over the most recent week, the company acquired 41,788 ETH, continuing a pattern of weekly purchases that has included sizable additions throughout January.

    SPECIAL OFFER (Exclusive)

    SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

    [ad_2]

    Chayanika Deka

    Source link

  • Tom Lee Still Sees Bitcoin At $250,000 But Warns 2026 Gets ‘Jagged’

    [ad_1]

    Fundstrat’s Tom Lee reiterated his $250,000 Bitcoin target while cautioning that 2026 could be a “jagged” year for crypto adoption and a turbulent one for broader risk assets, framing any major pullback as a buying window rather than a signal to de-risk.

    Speaking on The Master Investor Podcast with Wilfred Frost in an interview released Jan. 20, Lee said he expects 2026 to ultimately “look like a continuation of the bull market that started in 2022,” but argued markets must first digest several transitions that could deliver a drawdown large enough to “feel like a bear market.”

    $250,000 Bitcoin Call Comes With A 2026 Warning

    Lee pointed to what he described as a “new Fed” dynamic, arguing markets tend to “test” a new chair and that the sequencing of identification, confirmation, and reaction can catalyze a correction. He also warned that the White House could become “more deliberate in picking winners and losers,” expanding the set of sectors, industries, and even countries “in the bullseye,” which he said is already visible in gold’s strength.

    Related Reading

    A third friction point, in his telling, is AI positioning: the market is still calibrating “how much is priced into AI,” from energy needs to data-center capacity, and that uncertainty could linger until other narratives take the baton.

    Pressed on magnitude, Lee said with regards to the S&P 500, the drawdown “could be 10%,” but also “could be 15% or 20%,” potentially producing a “round trip from the start of the year,” before finishing 2026 strong. He added that his institutional clients did not appear aggressively positioned yet, and flagged leverage as a tell: margin debt is at an all-time high, he said, but up 39% year-over-year—below the 60% pace he associates with local market peaks.

    For crypto, Lee leaned on a market-structure explanation for why gold outperformed: he said crypto tracked gold until Oct. 10, when the market suffered what he called “the single largest deleveraging event in the history of crypto,” “bigger than what happened in November 2022 around FTX.”

    After that, he said, Bitcoin fell more than 35% and Ethereum almost 50%, breaking the linkage. “Crypto has periodic deleveraging events,” Lee said. “It really impairs the market makers and the market makers are essentially the central bank of crypto. So many of the market makers I would say maybe half got wiped out on October 10th.”

    That fragility, he argued, doesn’t negate the “digital gold” framing so much as it limits who treats it that way today. “Bitcoin is digital gold,” Lee said, but added that the set of investors who buy that thesis “is not the same universe that owns gold.”

    Related Reading

    Over time, Lee expects the ownership base to broaden, though not smoothly. “Crypto still has a, I think, future adoption curve that’s higher than gold because more people own gold than own crypto,” he said. “But the path to getting that adoption rate higher is going to be very jagged. And I think 2026 will be a really important test because if Bitcoin makes a new all-time high, we know that that deleveraging event is behind us.”

    Within that framework, Lee reiterated his high-conviction upside call: “We think Bitcoin will make a new high this year,” he said, confirming a $250,000 target. He tied the thesis to rising “usefulness” of crypto, banks recognizing blockchain settlement and finality, and the emergence of natively crypto-scaled financial models.

    Lee cited Tether as a proof point, claiming it is expected to generate nearly $20 billion in 2026 earnings with roughly 300 employees, and argued that the profit profile illustrates why blockchain-based finance can look structurally different from legacy banking.

    Lee closed with advice that intentionally cuts against short-horizon reflexes. “Trying to time the market makes you an enemy of your future performance,” he said. “As much as I’m warning about 2026 and the possibility of a lot of turbulence, they should view the pullback as a chance to buy, not the pullback as a chance to sell.”

    At press time, Bitcoin traded at $89,287.

    Bitcoin couldn’t close above the 0.618 Fib, 1-week chart | Source: BTCUSDT on TradingView.com

    Featured image created with DALL.E, chart from TradingView.com

    [ad_2]

    Jake Simmons

    Source link

  • BitMine Seeks Major Share Authorization Hike for Ethereum-Led Growth

    [ad_1]

    The proposal is framed as a structural move to preserve flexibility, not an immediate plan to issue new shares.

    BitMine Immersion Technologies is asking shareholders to approve a massive increase in its authorized shares.

    The company’s leadership, led by Chairman Tom Lee, has explained that this strategic move is designed to enable future stock splits, a necessity they believe will arise as the firm’s share price climbs in tandem with its primary treasury asset: Ethereum (ETH).

    Shareholder Vote Focuses on Future Flexibility

    In a series of posts on January 2, Lee directly addressed investor questions regarding Proposal 2, which seeks to raise BitMine’s authorized common stock from 500 million to 50 billion shares, with a shareholder vote on the measure due by January 14.

    The crypto entrepreneur was quick to dismiss concerns that the proposal signals immediate shareholder dilution. Instead, he outlined three strategic reasons for the change, which are facilitating selective capital raises, enabling opportunistic mergers, and accommodating future share splits.

    “The last point is key,” Lee wrote. “Any time a company splits shares, total authorized needs to be high enough to accommodate.”

    This plan is intrinsically linked to BitMine’s mid-2025 pivot to holding Ethereum as its main treasury asset. According to Lee, the company’s stock price now closely tracks the price of ETH.

    It has aggressively built its position, with its latest purchase of the asset being a $97.6 million splurge on 32,938 ETH on December 31, 2025, bringing its total holdings to about 4.07 million ETH, valued at approximately $12 billion.

    Ethereum’s Potential and the Path to Splits

    Lee’s vision for BitMine is predicated on a bullish long-term outlook for Ethereum itself. He cited institutional belief in tokenization, echoing statements from leaders like BlackRock’s Larry Fink, and argued that most of this activity will occur on the Ethereum network.

    You may also like:

    He projects the world’s second-largest cryptocurrency by market cap could eventually hit prices of $22,000, $62,000, or even $250,000 in a scenario where Bitcoin reaches $1 million.

    Using BitMine’s established price correlation with ETH, Lee provided illustrative calculations for where the company’s stock could trade. These scenarios suggest share prices of $500, $1,500, or $5,000.

    To keep shares accessible to retail investors, the 56-year-old stated the company would want to split its stock to reset the price near $25. Such splits would drastically increase the number of shares outstanding, necessitating the proposed boost in authorized shares.

    This forward-looking strategy is coming at a time when Ethereum is weathering a difficult period. Data shows 2025 was ETH’s worst year since 2018, with nine monthly losses contributing to a 12% annual decline.

    The asset is currently trading slightly above $3,000, showing a 3.5% increase in the last 24 hours but remaining 39% below its all-time high set in August 2025. Nonetheless, Lee and BitMine are positioning for a future they believe will be defined by Ethereum’s role in finance, building their treasury through the downturn in preparation for an anticipated rebound.

    SPECIAL OFFER (Exclusive)

    SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

    [ad_2]

    Wayne Jones

    Source link

  • Bitcoin Outlook Discord: Tom Lee Breaks Down Fundstrat’s Position

    [ad_1]

    According to reports, Fundstrat analysts are sending mixed signals about Bitcoin’s path in 2026. One line of work inside the firm sees a noticeable pullback early next year, while another predicts new highs arriving soon after.

    Related Reading

    Sean Farrell, Fundstrat’s head of digital asset strategy, is reported to have told clients that a “base case” would see Bitcoin move down toward the $60,000–$65,000 range in the first half of 2026.

    The same internal material attributes fallbacks for other major tokens — ETH toward about $1.8K–$2K and SOL near $50–$75 — which were framed as potential buying opportunities should markets correct.

    Risk Models And Shorter Time Horizons

    Farrell’s note, which has circulated as screenshots on social media and among clients, stresses risk management and the possibility of a meaningful drawdown before any sustained rally.

    The language in those client slides points to cautious positioning and to taking advantage of lower price levels if they arrive.

    Tom Lee’s Bullish Outlook Remains Publicly Strong

    By contrast, Tom Lee — Fundstrat’s co-founder and a longstanding voice on Bitcoin — has publicly said he expects new all-time highs in early 2026, with some media summaries quoting optimistic ranges as high as $200,000 by late January 2026.

    He has emphasized macro drivers, institutional flows, and cycle dynamics as reasons for continued upside in the coming months.

    Different Roles, Different Time Frames

    Reports have disclosed that the two views reflect different analytical roles inside the firm: one focused on portfolio-level downside planning and the other on longer-term macro scenarios.

    BTCUSD currently trading at $87,838. Chart: TradingView

    Several clients and observers on X (formerly Twitter) have pushed back on the idea that these are contradictory; instead, they say the notes reflect distinct mandates and time frames.

    Market Reaction and What Investors Are Hearing Now

    Markets reacted to the story with a mix of skepticism and quick profit-taking. Some traders flagged how fast sentiment can change when internal notes leak, while others said the range of outcomes — from roughly $60,000 to $200,000 — only underlines how uncertain forecasts remain for 2026.

    Trading desks are reported to be treating the internal slides as one input among many, not as an official firm forecast.

    Related Reading

    Public Takeaway

    According to the coverage, Fundstrat has not issued a unified, public forecast that collapses the two views into one number.

    Instead, clients and the market are being asked to weigh a downside scenario presented by the digital-assets team against a bullish macro scenario voiced by leadership.

    Featured image from Unsplash, chart from TradingView

    [ad_2]

    Christian Encila

    Source link

  • Crypto Carnage Continues — Tom Lee Exposes What’s Really Going On

    [ad_1]

    The global crypto market pulled back to about $3.23 trillion on Monday, down close to a percent from recent levels, and signs of weakness were visible across most top tokens.

    Related Reading

    According to market trackers, investor mood is chilled — the Fear and Greed Index sits at 18, labeled extreme fear — and the average Relative Strength Index for major coins hovers near 41, a reading that leans toward oversold conditions.

    Bitcoin was trading around $95,400 while Ethereum hovered near $3,155, with many large-cap assets showing only small daily moves.

    Source: Alternative.me

    Tom Lee Issues Long-Term Take

    According to Tom Lee, BitMine chairman and an early Bitcoin bull at Fundstrat, the current pullback does not wipe out the potential for much larger gains down the road.

    Lee noted that Bitcoin rose roughly 100x from his first recommendation back in 2017, when the price was near $1,000, and he suggested Ethereum may be at the start of a similar long-term run.

    He cautioned that investors who benefited from past rallies had to endure extreme drops — some as deep as 75% — and said present volatility could be the market “discounting a massive future.”

    Short-Term Signals Point To Oversold Conditions

    Market technicians and on-chain analysts are pointing to clear short-term stress. The Fear and Greed Index at 18 is one headline figure. Average RSI readings near 41 imply more selling than buying momentum right now.

    Based on reports from CryptoQuant, Ether trading around $3,150 sits roughly $200 above the mean cost basis held by long-term accumulators — a level that could act as support if those holders remain patient.

    Bitcoin, by comparison, has pulled back about 20% from its recent peak, while Ethereum has fallen more than 30% from its high.

    Ether Holder Levels Close To Historic Peaks

    Ethereum’s path this year diverged from Bitcoin for a while: ETH topped out at $4,940 in August, while Bitcoin pushed to a peak above $126,000 in October.

    That gap left Ether lagging for months even as Bitcoin made fresh highs. Now, with ETH nearer to where long-term holders bought in, some analysts see a potential floor forming.

    BTCUSD now trading at $95,592. Chart: TradingView

    Reports have disclosed that these accumulators have been “patiently stacking,” and their cost positions matter for near-term price action.

    Altcoins Show Little Momentum

    Smaller large-cap coins are holding weaker ground. XRP was trading near $2.20, BNB around $932 and Solana close to $138, with most of last week’s gains fading.

    Other popular tokens — Tron, Dogecoin, Cardano, Chainlink, Hyperliquid and Zcash — are under light selling pressure and low net movement, suggesting market-wide caution rather than a single-asset sell-off.

    Related Reading

    Bigger Players, Liquidations And The Outlook

    Lee added that he expects signs of recovery and stability within six to eight weeks. He advised against using borrowed funds now, warning that forced sell-offs can accelerate losses.

    According to his remarks, aggressive positions designed to trigger liquidations by large firms can amplify price swings. He cautioned that some of the sharper moves may be tied to stress among big market makers.

    Featured image from Unsplash, chart from TradingView

    [ad_2]

    Christian Encila

    Source link

  • Ethereum To $5,500 In Weeks, $12,000 By Year-End, Tom Lee Predicts

    [ad_1]

    Reason to trust

    Strict editorial policy that focuses on accuracy, relevance, and impartiality

    Created by industry experts and meticulously reviewed

    The highest standards in reporting and publishing

    Strict editorial policy that focuses on accuracy, relevance, and impartiality

    Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

    Fundstrat co-founder Tom Lee laid out a forceful, policy-driven Ethereum bull thesis in an interview on August 26, arguing that a US regulatory pivot, Wall Street’s move to on-chain infrastructure, and institutional demand routed through public “crypto treasuries” set the stage for a sharp fourth-quarter repricing. “In the near term, you know, $5,500 should be happening in the next couple of weeks,” Lee said, adding that by year end ETH “should be closer to $10,000 to $12,000,” with the bulk of crypto’s yearly gains typically arriving in Q4.

    Ethereum’s ‘1971 Moment’

    The brain behind BitMine’s ETH treasury strategy frames 2025 as a structural break comparable to the US dollar’s 1971 break from gold. In his view, Washington’s posture has shifted from seeing crypto as a threat to positioning it as an instrument of financial leadership. “In the last 12 months, there’s been a sea change, partly because of the election, where crypto is no longer considered an enemy… but really part of how the US financial system will get leadership,” Lee said.

    He pointed to stablecoins—“the breakout product, you know, the chat-GPT moment”—the proposed GENIUS Act and what he called the SEC’s “Project Crypto,” contending these signals show regulators want “Wall Street to use the blockchain to actually make America more innovative and actually spread America’s financial influence around the world.”

    Related Reading

    From there, Lee’s thesis centers on Ethereum as the default institutional settlement layer. “Wall Street doesn’t want the fastest chain… They want a reliable chain that they can build upon. Ethereum has had zero downtime in its entire history. So to me, it’s the natural selection.”

    Calling Ethereum a “fat protocol,” he argued that value accrues at the base layer as tokenization and payment rails migrate on-chain. Citing work “from Mosaics and from Fundstrat,” Lee said that, if the network captures major payment and banking flows, “you get to a network value of $60,000 value per ETH” over a 10- to 15-year horizon.

    BitMine’s Strategy

    A substantial part of the conversation focused on the public-equity vehicle he chairs, Bitmine, which he described as an actively managed Ethereum treasury. Lee contrasted holding spot ETH with owning a company that uses capital markets to expand ETH per share. “When Bitmine started… there was only $4 worth of Ethereum held per share,” he said of a July 8 baseline.

    “As of August 24, we now have $39.84 worth of Ethereum held per share… So the reason we had a 10x in your holdings is because Bitmine is actively managing to grow your Ethereum held per share by using capital markets and attracting the interest of institutional investors.”

    He argued that this approach can be “anti-dilutive” when executed at an equity premium to net asset value: “If your ETH per share is going up, none of the capital markets is dilution.” Lee added that Bitmine has “a billion-dollar stock repurchase program in place because if the stock becomes too cheap relative to its ETH holdings, it would make more sense to actually buy back stock.”

    Related Reading

    On strategy, Lee outlined an ambition to control roughly 5% of staked ETH, claiming a “power law” effect as network importance scales. “If you’re a staking entity that owns 5 percent, then you have a positive influence on future upgrades… [and] one of the most important vectors for when Wall Street wants to build on Ethereum,” he said. With Ethereum’s proof-of-stake mechanics, he asserted that current holdings could generate substantial income: “With the $9 billion worth of ETH held today, that’s about almost $300 million of net income.”

    Tom Lee’s Macro View

    Institutional demand, Lee maintained, is finally rotating toward ETH via regulated wrappers and equities, even as many large allocators still underweight it. “Ethereum is still generally not liked by institutions because most have bet on Bitcoin… that’s why Ethereum is probably falling into… the most hated rally,” he said, noting that year-to-date ETH gains of 35 percent have outpaced Bitcoin’s 17 percent.”

    Lee’s macro overlay extends beyond crypto. He reiterated a constructive equity view contingent on Federal Reserve easing and a cyclical upturn. “If the Fed follows through and begins to cut… and then we get a drop in mortgage rates and the ISM turning up and therefore financials really begin to participate, I think that’s why we get to 6,800 or so on the S&P,” he said. While acknowledging that “September is the month everyone’s going to be worried about,” he characterized any pullback as buyable: “Since 2022… that has always been a dip buying opportunity.”

    At press time, ETH traded at $4,614.

    Ethereum price
    ETH stalls below key resistance, 1-week chart | Source: ETHUSDT on TradingView.com

    Featured image created with DALL.E, chart from TradingView.com

    [ad_2]

    Jake Simmons

    Source link

  • Ethereum As The Default Crypto Backbone: The Real Reason Behind Tom Lee’s Pick

    [ad_1]

    Ethereum has become the default settlement layer engine of decentralized finance, and Tom Lee, the co-founder of Fundstrat Global Advisors, has recently expressed a bullish stance on ETH that was far from a random call. This dominant position explains why Lee’s confidence in ETH is rooted in speculation and the backbone of digital finance.

    How Ethereum Powers The Largest Share Of Decentralized Finance

    In an X post, analyst AdrianoFeria has highlighted that Tom Lee, the co-founder of Fundstrat Global Advisors, has chosen ETH because it is the default choice for stablecoins, tokenization, and DeFi, and the very rails on which the future of finance is being built. Ethereum is the internet of finance, and Wall Street is finally waking up to the reality.

    Tom Lee and more high-profile figures of institutional finance are entering the ETH race and quietly building positions. The analyst noted that Ethereum treasuries are not just decentralized asset trackers (DATs). Rather, they are the perfect vehicle for influential billionaires who are late to ETH to gain leveraged exposure, while gifting early investors an entire army of mainstream ETH bulls who will defend their allocation in the media and beyond.

    He has also stated that the representation of these treasuries and the capital flowing in is not just retail noise anymore, but is big money with a megaphone. The people backing Ethereum are changing the story at the highest levels of finance, and ETH is getting closer to cementing its role as the backbone of global markets.

    However, this isn’t Bitcoin’s game anymore. It’s Ethereum’s internet of finance, and the smart money knows it. For those still clinging to the tired argument that ETH isn’t a store of value, the market has been slapping that narrative down for a decade. Despite endless FUD from no-coiners and even insiders, ETH has been the best-performing asset in the world over the last ten years. 

    Why ETH’s Volume Momentum Could Matter For Bulls

    Following its recent upward trend to a new all-time high, AdrianoFeria also revealed that the ETH momentum over the past three months has been more than just price appreciation. It has been a showcase of growing market dominance. Unlike most altcoins, ETH has consistently brought higher trading volume on exchanges compared to any other crypto asset, including Bitcoin.

    ETH’s volume has been trending upward steadily, while signaling sustained investor interest and market activity. The widening gap between ETH and BTC trading volumes underscores a shift in market attention, and as ETH/BTC continues to climb, more traders and institutions are prioritizing Ethereum.

    [ad_2]

    Godspower Owie

    Source link

  • Bitcoin’s bullish horizon: Tom Lee forecasts $150,000 target

    Bitcoin’s bullish horizon: Tom Lee forecasts $150,000 target

    [ad_1]

    Tom Lee, the founder and head of research at FundStrat Global Advisors, has once again vocalized a compellingly bullish forecast for Bitcoin (BTC). 

    During an engaging interview with CNBC, Lee projected an impressive potential upswing for Bitcoin, positing it might escalate to a staggering $150,000 within the next 12 to 18 months. 

    This prediction suggests a roughly 117% increase from its current standing, captured against the backdrop of Bitcoin’s role as a safeguard against fiscal instability. 

    “I think that sometime in the next 12–18 months, Bitcoin can be over $150,000. But that’s because the backdrop for BTC is so much more favorable today.”

    Highlighting a trio of factors underpinning his optimistic outlook, Lee underscored the increasing clamor for a spot exchange-traded fund (ETF) as a primary driver. 

    According to Lee, the fervent investment flow into the spot Bitcoin ETF, coupled with the upcoming Bitcoin halving event, creates a ripe environment for Bitcoin’s value to climb. 

    The halving event is poised to reduce the cryptocurrency’s new supply.

    Lee specifically pointed to the fresh inflows into spot Bitcoin ETFs, like BlackRock’s, which recently witnessed a nearly $800 million boost. He explained to CNBC that the demand increase observed with the introduction of new ETFs, coupled with the supply decrease due to halving, along with the expected easing of monetary policy, is likely to support risk assets.

    He also mentioned that these ETFs now have over $28 billion in assets, surpassing the assets in the Grayscale Bitcoin Trust ETF (GBTC) for the first time. This milestone signals strong institutional interest in Bitcoin.

    Lee further elaborated on the supply-demand discrepancy, particularly ahead of the Bitcoin halving event, which is anticipated to exacerbate this imbalance in favor of price surges.

    On the regulatory front, Lee conveyed an optimistic view. He suggested that Bitcoin might have already traversed the toughest phase of regulatory challenges over the past 18 months. 

    He suggested that considering the intensity of regulatory actions experienced in the crypto space in the past 12 to 18 months, it is unlikely, from his perspective, that the regulatory challenges for Bitcoin will intensify further.

    The forecast comes at a time when Bitcoin has seen a slight cooling off after hitting a new all-time high of $70,083 on March 8. Despite a minor dip below the $68,300 threshold, Bitcoin’s resilience remains notable.

    Bitcoin 24-hour price chart | Source: CoinGecko

    At the time of writing, the coin’s price was up 1.5% over 24 hours. Bitcoin was changing hands at $69,308, per data from CoinGecko. Its trading volume over that period suffered a nearly 39% dip, ending the day with a value of $31,576,168,688.

    Lee’s insight into Bitcoin’s potential trajectory offers a gleaming beacon for bullish investors and a fascinating storyline in the dynamic world of cryptocurrency.


    Follow Us on Google News

    [ad_2]

    Julius Mutunkei

    Source link

  • Expect a stock market pullback in early 2024 for these 4 reasons, Fundstrat says

    Expect a stock market pullback in early 2024 for these 4 reasons, Fundstrat says

    [ad_1]

    Stocks aren’t exhibiting end-of-cycle behavior, Fundstrat’s Tom Lee said.Brendan McDermid/Reuters

    • Fundstrat’s Tom Lee is bullish on the stock market in 2024, but he doesn’t expect stocks to go up in a straight line.

    • Lee warned that the stock market is due for a sell-off in the first quarter of 2024.

    • These are the 4 reasons why Lee expects a stock market pullback to occur within the next few months.

    Fundstrat’s Tom Lee is one of the most bullish strategists on Wall Street for 2024, but he doesn’t expect the stock market to go up in a straight line.

    Lee warned clients in a note on Friday that the stock market is due for a sell-off within the first few months of 2024.

    To be clear, Lee does expect the S&P 500 to rise to an all-time high during the month of January, and he expects gains in the stock market to continue over the next year, with a 2024 year-end S&P 500 price target of 5,200.

    “Reaching an all-time high is a significant market milestone. And stocks do not suddenly reverse from there,” Lee said.

    But the stock market hitting record highs in January will likely soon be followed by a pullback of about 5% sometime in February or March, representing a period of consolidation for the stock market after it staged a 16% rally since the end of October.

    “In the current context, we could see S&P 500 4,400 to 4,500 once we make all-time highs, or a modest pullback,” Lee warned. “This is consistent with our 2024 Year Ahead Outlook, where our base case is the S&P 500 makes most of its gains in [the] second half of 2024.”

    Lee offered the following four reasons why he expects stocks to stage a pullback after January.

    1. The market could be getting ahead of the Federal Reserve in terms of interest rate cuts. While the Fed expects only three interest rate cuts in 2024, the market is currently pricing in six interest rate cuts next year. Any pullback in expectations of how many times the Fed cuts interest rates next year could lead to downside volatility in stocks.

    2. “AI timeline could be pushed out due to a ‘systematic hack’ by malevolent AI,” Lee said.

    3. “Equity markets need to consolidate the parabolic gains from late 2023,” Lee said.

    4. “A drawdown in February/March timeframe is consistent with election year seasonal returns,” Lee said.

    stock marketstock market

    Fundstrat

    Any dips in the stock market next year should ultimately be bought, Fundstrat says, as technical strategist Mark Newton said in a note last week that trillions of dollars of cash on the sidelines should provide enough fire power to make any dips in stocks short-lived.

    Read the original article on Business Insider

    [ad_2]

    Source link

  • Top Wall Street bull sounds the alarm on one of the biggest risks for the stock market in 2024

    Top Wall Street bull sounds the alarm on one of the biggest risks for the stock market in 2024

    [ad_1]

    Cindy Ord/Getty Images

    • Wall Street’s top bull highlighted two big risks that could upend the stock market in 2024.

    • Fundstrat’s Tom Lee said a hard landing in the economy and a parabolic melt-up in the stock market are risks to watch. 

    • “If we have a parabolic move in December and we end up at S&P 5000 by  December 31, you’ve pulled forward a lot of the gains for 2024,” Lee said.

    One of Wall Street’s biggest bulls highlighted the two big risks that could derail the stock market next year.

    Fundstrat’s Tom Lee, who has one of the highest S&P 500 price target for 2024 at 5,200, told CNBC on Thursday that a hard landing in the economy and frothy trading action could lead to a volatile stock market next year.

    Lee said that he expects the US economy to continue to grow in 2024, with PMI’s likely to turn higher in part because of the Federal Reserve signaling that it will shift from hawkish interest rate hikes to dovish interest rate cuts in 2024.

    But a hard landing in the economy could still materialize if other countries don’t rebound from their current economic slump.

    “You need a global turn, so China and Europe have to emerge from this stagnation, and if [they] don’t maybe we talk about a hard landing,” Lee said.

    China in particular has been suffering from economic malaise since the government eased COVID-19 restrictions. A combination of high youth unemployment, challenging demographics, and a crumbling real estate market has put pressure on the second largest economy in the world.

    The second risk to Lee’s bullish view is a melt-up in the stock market between now and the end of December.

    “The second [risk] is if we have a parabolic move in December and we end up at S&P 5000 by December 31, you’ve pulled forward a lot of the gains for 2024, so the first half [of 2024] could be pretty bad,” Lee said.

    The S&P 500 traded at 4,717 on Friday, about 5% away from 5,000.

    Since October 27, the S&P 500 has surged 14%, the Nasdaq 100 is up 17%, and the Russell 2000 is up 22%. Meanwhile, the Dow Jones Industrial Average surged to an all-time high this week, while all of the other major indexes are within spitting distance of a new record high.

    Such sharp moves higher in the stock market in such a short period of time could lead to a local top that requires months of consolidation before further gains can be had, and that’s the exact worry on Lee’s mind.

    Read the original article on Business Insider

    [ad_2]

    Source link

  • A ‘baby rally’ has taken hold in the stock market this week, and it could lead to bigger gains ahead

    A ‘baby rally’ has taken hold in the stock market this week, and it could lead to bigger gains ahead

    [ad_1]

    Victoria Parrinello sits inside her father’s booth on the floor of the New York Stock Exchange, November 27, 2015.REUTERS/Brendan McDermid

    • A “baby rally” has unfolded in the stock market that could be the start of a broader year-end rally.

    • That’s according to Fundstrat’s Tom Lee, who highlighted fundamental and technical reasons for a rally.

    • “There are a few structural reasons to expect stocks to have some positive traction in coming weeks,” Lee said.

    A “baby rally” has taken hold of the stock market in recent days, and it could represent the start of a larger year-end surge in stock prices.

    That’s according to a Friday note from Fundstrat’s Tom Lee, who highlighted several fundamental and technical factors that should support stock prices over the next few weeks.

    “Incoming macro developments have been favorable in a way that, in our view, sets the stage for stocks to gain in the near-term,” Lee said. “So far, it is a ‘baby rally’ but this could turn into a larger rally.”

    For one, Lee said that a soft October jobs report “would be unequivocally positive” for stock prices. That’s exactly what happened, with 150,000 jobs added to the economy last month, below consensus estimates for a gain of 180,000 jobs.

    That softness in the jobs report gives the Federal Reserve more breathing room in its trajectory path of interest rates. The 10-year US Treasury yield fell 15 basis points to 4.50% on Friday after hitting a multi-year high of more than 5% last week.

    Meanwhile, corporate earnings results for the third-quarter have remained overwhelmingly positive. So far, 80% of S&P 500 companies have reported earnings, and 82% of those companies beat earnings by a median of 7%, according to data from Fundstrat.

    Other positive fundamentals developing in markets, according to Lee, includes the stock market fear gauge (the VIX) plunging from the 20 level to just above 15, the end of tax loss harvesting trades for mutual funds in October, and a meaningful move lower in long-term interest rates.

    From a technical perspective, Lee said “there are a few structural reasons to have some positive traction in coming weeks.”

    Those reasons include the percentage of stocks trading above their 200-day moving average falling to just 23%, which is a bottom decile reading since 1994. When stocks have gotten this oversold, the median six-month forward gain is 9.7% with a 80% win-ratio, according to Lee.

    Meanwhile, the Nasdaq 100 saw 15 consecutive days when the 5-day return was negative. This has happened only 14 times since 1985, and excluding the dot-com bubble, the median 12-month forward gain was 19% with a 91% win-ratio.

    “These are meaningful quantitative/structural arguments for why a durable bottom was formed in late October. And if so, this is a case for this ‘baby rally’ to strengthen,” Lee said.

    Stock marketStock market

    Fundstrat

    Read the original article on Business Insider

    [ad_2]

    Source link